- GAAP EPS of $1.54, Up 1285% YoY; Adjusted EPS of $0.69, Up 103%
YoY
- GAAP Operating Income of $42.6 Million, Up 1133% YoY; Adjusted
Operating Income of $27.3 Million, Up 70% YoY
- Orders up 18% Reported and 26% Organically
- Progressing with Review of Strategic Alternatives
CIRCOR International, Inc. (NYSE: CIR) (“CIRCOR” or “the
Company”), one of the world’s leading providers of mission critical
flow control products and services for the Industrial and Aerospace
& Defense markets, today announced financial results for the
third quarter ended October 2, 2022.
Q3 2022 Overview:
- Revenue of $195 million up 3% reported and 10% organically
compared to Q3'2021
- Aerospace & Defense revenue of $72 million, up 14% reported
and 18% organically
- Industrial revenue of $123 million, down (2%) reported and up
6% organically
- Orders of $228 million, up 18% and 26% organically
- Aerospace & Defense orders of $90 million, up 67% and 74%
organically
- Industrial orders of $138 million, down (1%) and up 8%
organically
- Backlog of $497 million, up 14% driven by strong demand in both
Aerospace & Defense and Industrial segments
- GAAP operating income of $42.6 million, up 1133%
- GAAP operating margin of 21.8%, up 2000 bps
- Adjusted operating income $27.3 million, up 70%
- Adjusted operating margin of 14%, up 550 bps
CIRCOR President and CEO Tony Najjar said, “Our team performed
extremely well in the third quarter exceeding expectations. We
delivered a great quarter with strong organic orders, revenue
growth and expanded operating margin. Organic orders grew 26%,
driven by exceptional performance in A&D, which delivered 74%
growth in organic orders. I am particularly pleased with our win
rate on key missile programs, our orders growth in medical
products, and our sustained momentum in commercial aerospace as
that market continues its recovery. In our Industrial segment, we
are leveraging our aftermarket position to deliver strong pricing,
enabling us to overcome the impact of inflation and generate solid
margin expansion.”
Mr. Najjar continued, “Both Industrial and A&D benefited
from disciplined execution of our strategic priorities to drive
revenues and operating income growth. Our results underscore our
emphasis on value pricing, our strong aftermarket position, and
operational simplification/cost out actions. We grew adjusted
operating income by 70% and drove 550 bps improvement in adjusted
operating margin despite inflation pressure, ongoing supply chain
and logistics challenges, and rising energy costs. With the actions
taken, and continued operating discipline and focus on our
customers, we have positioned both segments to deliver sustained
growth and shareholder value.”
Conference Call Information
CIRCOR International will hold a conference call to review its
third-quarter 2022 financial results at 9:00 a.m. ET today,
November 14, 2022. To listen to the live conference call and view
the accompanying presentation slides, please visit “Webcasts &
Presentations” in the “Investors” portion of CIRCOR’s website.
https://investors.circor.com/. The live call also can be accessed
by dialing (877) 407-5790 or (201) 689-8328. Participants are
encouraged to dial in to the call at least 15 minutes prior to the
start time. The webcast will be archived on the Company’s website
for one year.
Selected Consolidated
Results
(unaudited)
($ millions except EPS)
Q3 2022
Q3 2021
Change
Nine Months Ended October 2,
2022
Nine Months ended October 3,
2021
Change
Revenue1
$
195.4
$
189.7
3
%
$
572.4
$
553.8
3
%
GAAP operating (loss) income
42.6
3.5
1133
%
42.6
(10.4
)
510
%
Adjusted operating income2
27.3
16.0
70
%
54.3
33.8
61
%
GAAP operating margin
21.8
%
1.8
%
2000 bps
7.5
%
(1.9
)%
940 bps
Adjusted operating margin3
14.0
%
8.5
%
550 bps
9.5
%
6.1
%
340 bps
GAAP (loss) per share
$
1.54
$
(0.13
)
1285
%
$
0.68
$
(1.65
)
141
%
Adjusted earnings per share
(diluted)4
$
0.69
$
0.34
103
%
$
1.06
$
0.56
89
%
Operating cash flow
(9.8
)
10.2
-196
%
(29.3
)
(0.1
)
-29200
%
Adjusted free cash flow5
(14.0
)
5.7
-347
%
(42.5
)
(10.7
)
-297
%
Orders6
$
228.3
$
193.7
18
%
$
657.3
$
630.6
4
%
Segment Results
(unaudited)
($ in millions)
Q3 2022
Q3 2021
Change
Nine Months Ended October 2,
2022
Nine Months ended October 3,
2021
Change
Aerospace & Defense
Revenue
$
72.2
$
63.5
14
%
$
202.9
$
182.6
11
%
Segment operating income
16.9
15.9
6
%
41.8
37.7
11
%
Segment operating margin
23.4
%
25.1
%
-170 bps
20.6
%
20.6
%
0 bps
Orders6
$
90.5
$
54.0
67
%
$
237.4
$
181.3
31
%
Industrial
Revenue1
$
123.1
$
126.2
-2
%
$
369.5
$
371.2
—
%
Segment operating income2
15.7
7.1
121
%
31.1
20.2
54
%
Segment operating margin3
12.8
%
5.6
%
720 bps
8.4
%
5.4
%
300 bps
Orders6
$
137.8
$
139.7
-1
%
$
420.9
$
449.3
-6
%
- Consolidated and Industrial segment revenues for Q3 2022 and Q3
2021 included $0.0 million and $3.2 million, respectively, relating
to our Pipeline Engineering business.
- Adjusted operating income is a non-GAAP financial measure.
Refer to “Use of Non-GAAP Financial Measures” for an explanation of
our non-GAAP financial measures and to the reconciliations included
in this press release. Adjusted operating income and Industrial
segment operating income for Q3 2022 and Q3 2021 included $(0.1)
million and $(2.5) million, respectively, relating to our Pipeline
Engineering business.
- Adjusted operating margin is a non-GAAP financial measure.
Adjusted operating margin for Q3 2022 and Q3 2021 included (1875)%
and (76)%, respectively, relating to our Pipeline Engineering
business.
- Adjusted earnings per share (diluted) is a non-GAAP financial
measure. Adjusted earnings per share and our segment results for Q3
2022 exclude net gain from non-cash acquisition-related intangible
amortization and special and restructuring charges of $15.2
million, consisting of (i) $10.4 million for non-cash
acquisition-related intangible amortization and depreciation
expense; (ii) $0.1 million of costs due to the investigation into
the accounting irregularities of the Pipeline Engineering business
and incremental professional services incurred due to the
restatement; (iii) $0.2 million of special charges related to the
evaluation of strategic alternatives for the company; (iv) other
special and restructuring charges net of $0.1 million; and (v) a
gain of $26.0 million on the sale of real estate located at Corona,
California. Adjusted consolidated and segment results for Q3 2021
exclude net income from discontinued operations of $2.5 million and
net loss from non-cash acquisition-related intangible amortization,
special and restructuring charges totaling $12.6 million. These
charges include: (i) $11.8 million for non-cash acquisition-related
intangible amortization and depreciation expense; and (ii) $0.8
million of other special and restructuring recoveries.
- Adjusted free cash flow, a non-GAAP financial measure, is
calculated by subtracting GAAP capital expenditures, net of
proceeds from asset sales, from GAAP operating cash flow.
- Orders, an operating measure, is defined as a legally binding
agreement from an authorized individual at a customer requesting
CIRCOR to provide goods and/or services at a fixed or determinable
price and CIRCOR is capable of providing such goods and services,
when the terms and conditions are firm enough to assure subsequent
payment by the customer. Consolidated and Industrial segment orders
for Q3 2022 and Q3 2021 included $0.0 million and $6.6 million,
respectively, relating to our Pipeline Engineering business. As
previously disclosed in our Form 10-K for the year ended December
31, 2021, the Company discovered accounting irregularities in its
Pipeline Engineering business unit resulting in a restatement of
previously issued financial statements.
Company Files Quarterly Report on Form 10-Q for the Period
Ended October 2, 2022
The Company today filed its Quarterly Report on Form 10-Q for
the third quarter of 2022.
Use of Non-GAAP Financial Measures
In this press release, the Company uses the non-GAAP financial
measures adjusted net income, adjusted EBITDA, adjusted operating
income, adjusted operating margin, adjusted earnings per share and
adjusted free cash flow. Non-GAAP financial measures are used by
management in our financial and operating decision making because
we believe they reflect our ongoing business and facilitate
period-to-period comparisons. We believe that these non-GAAP
financial measures provide useful information to investors and
others in understanding and evaluating CIRCOR’s current operating
performance and future prospects in the same manner as management
does if they so choose. These non-GAAP financial measures can also
assist investors and others in comparing CIRCOR’s current financial
results with CIRCOR’s past financial results in a consistent
manner.
We exclude costs and tax effects associated with special and
restructuring activities, such as reducing overhead and
consolidating facilities. We believe that the costs related to
special and restructuring activities are not indicative of our
normal operating costs. We exclude certain acquisition-related
costs, including significant transaction costs and amortization of
inventory and fixed-asset step-ups and the related tax effects. We
exclude these costs because we do not believe they are indicative
of our normal operating costs.
We exclude the expense and tax effects associated with the
non-cash amortization of acquisition-related intangible assets
because a significant portion of the purchase price for
acquisitions may be allocated to intangible assets that have lives
up to 25 years. Exclusion of the non-cash amortization expense
allows comparisons of operating results that are consistent over
time for both our newly acquired and long-held businesses and with
both acquisitive and non-acquisitive peer companies.
We exclude certain gains/losses and related tax effects, which
are either isolated or cannot be expected to occur again with any
predictability, and that we believe are not indicative of our
normal operating gains and losses. For example, we exclude
gains/losses from items such as the sale of a business, significant
litigation-related matters and lump-sum pension plan settlements.
We exclude the results of discontinued operations. We exclude
goodwill impairment charges. We exclude these costs because we do
not believe they are indicative of our normal operating costs.
Due to the significance of recently sold or exited businesses
and to provide a comparison of changes in our revenue and orders
(an operating measure), we also discuss these changes on an
“organic” basis. Organic is calculated assuming the divestitures
and/or exited businesses completed prior to July 3, 2022 were
completed on January 1, 2021 and excluding the impact of changes in
foreign currency exchange rates.
CIRCOR’s management uses these non-GAAP measures, in addition to
GAAP financial measures, as the basis for measuring the Company’s
operating performance and comparing such performance to that of
prior periods and to the performance of our peers. We use such
measures when publicly providing our business outlook, assessing
future earnings potential, evaluating potential acquisitions and
dispositions and in our financial and operating decision-making
process, including for compensation purposes.
Investors should recognize that these non-GAAP measures might
not be comparable to similarly titled measures of other companies.
These measures should be considered in addition and not as a
substitute for or superior to, any measure of performance, cash
flow or liquidity prepared in accordance with accounting principles
generally accepted in the United States. A reconciliation of the
non-GAAP financial measures to the most directly comparable GAAP
measures is included in this news release.
About CIRCOR International, Inc.
CIRCOR International is one of the world’s leading providers of
mission critical flow control products and services for the
Industrial and Aerospace & Defense markets. The Company has a
product portfolio of market-leading brands serving its customers’
most demanding applications. CIRCOR markets its solutions directly
and through various sales partners to more than 14,000 customers in
approximately 100 countries. The Company has a global presence with
approximately 3,100 employees and is headquartered in Burlington,
Massachusetts. For more information, visit the Company’s investor
relations website at http://investors.circor.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Actual results may differ
materially from the expectations the Company describes in its
forward-looking statements. Substantial reliance should not be
placed on forward-looking statements because they involve unknown
risks, uncertainties and other factors, which are, in some cases,
beyond the control of CIRCOR. Important factors that could cause
actual results to differ materially from expectations include, but
are not limited to the inability to achieve expected results in
pricing and cost out actions and the related impact on margins and
cash flow; the effectiveness of the Company’s internal control over
financial reporting and disclosure controls and procedures; the
remediation of the material weaknesses in the Company’s internal
controls over financial reporting or other potential weaknesses of
which the Company is not currently aware or which have not been
detected; the timing of the Company regaining compliance with the
NYSE’s continued listing standards; the timing and outcome, if any,
of the Company’s strategic alternatives review; the uncertainty
associated with the current worldwide economic conditions and the
continuing impact on economic and financial conditions in the
United States and around the world, including as a result of
COVID-19 , rising inflation, increasing interest rates, natural
disasters, military conflicts, including the conflict between
Russia and Ukraine, terrorist attacks and other similar matters;
and the risks detailed from time to time in the Company’s periodic
reports filed with the SEC. Before making any investment decisions
regarding CIRCOR, the Company strongly advises you to read the
section entitled “Risk Factors” in its 2021 Annual Report on Form
10-K, which can be accessed under the “Investors” link of the
Company’s website at www.circor.com. The Company undertakes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
CIRCOR INTERNATIONAL,
INC
CONSOLIDATED STATEMENT OF
OPERATIONS
(in thousands, except per
share data) (unaudited)
Three Months Ended
Nine Months Ended
October 2, 2022
As Restated October 3,
2021
October 2, 2022
As Restated October 3,
2021
Net revenues
$
195,362
$
189,709
$
572,392
$
553,750
Cost of revenues
128,116
131,898
391,660
387,943
Gross profit
67,246
57,811
180,732
165,807
Selling, general and administrative
expenses
50,392
53,546
160,517
169,371
Special and restructuring (recoveries)
charges, net
(25,702
)
814
(22,430
)
6,808
Operating income (loss)
42,556
3,451
42,645
(10,372
)
Other expense (income):
Interest expense, net
11,821
7,997
31,481
24,325
Other (income), net
(2,396
)
(256
)
(5,321
)
(3,301
)
Total other expense, net
9,425
7,741
26,160
21,024
Income (loss) from continuing operations
before income taxes
33,131
(4,290
)
16,485
(31,396
)
Provision for income taxes
1,661
850
2,536
3,206
Income (loss) from continuing operations,
net of tax
31,470
(5,140
)
13,949
(34,602
)
Income from discontinued operations, net
of tax
—
2,510
—
1,393
Net income (loss)
$
31,470
$
(2,630
)
$
13,949
$
(33,209
)
Basic income (loss) per common
share:
Basic from continuing operations
$
1.55
$
(0.25
)
$
0.69
$
(1.72
)
Basic from discontinued operations
$
—
$
0.12
$
—
$
0.07
Net income (loss)
$
1.55
$
(0.13
)
$
0.69
$
(1.65
)
Diluted income (loss) per common
share:
Diluted from continuing operations
$
1.54
$
(0.25
)
$
0.68
$
(1.72
)
Diluted from discontinued operations
$
—
$
0.12
$
—
$
0.07
Net income (loss)
$
1.54
$
(0.13
)
$
0.68
$
(1.65
)
Weighted average number of common
shares outstanding:
Basic
20,364
20,257
20,345
20,181
Diluted
20,410
20,257
20,410
20,181
CIRCOR INTERNATIONAL,
INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended
OPERATING ACTIVITIES
October 2, 2022
As Restated October 3,
2021
Net income (loss)
$
13,949
$
(33,209
)
Income from discontinued operations, net
of income taxes
—
1,393
Income (loss) from continuing operations,
net of tax
13,949
(34,602
)
Adjustments to reconcile net income (loss)
to net cash used in operating activities:
Depreciation
15,012
17,505
Amortization
27,704
31,929
Change in provision for bad debt
expense
(263
)
(383
)
Write down of inventory
1,797
1,742
Compensation expense for share-based
plans
980
4,165
Loss on debt extinguishment
4,977
—
Amortization of debt issuance costs
2,672
3,032
Deferred tax provision
45
823
Loss on sale of businesses
—
1,308
Gain on sale of real estate
(47,977
)
—
Other impairment charges
8,011
—
Loss on deconsolidation charges
4,675
—
Changes in operating assets and
liabilities, net of effects of acquisitions and divestitures:
Trade accounts receivable
(1,116
)
8,686
Inventories
(28,364
)
(11,621
)
Prepaid expenses and other assets
(25,387
)
(26,686
)
Accounts payable, accrued expenses and
other liabilities
(6,047
)
6,439
Net cash (used in) provided by continuing
operating activities
(29,332
)
2,337
Net cash used in discontinued operating
activities
—
(2,484
)
Net cash used in operating
activities
(29,332
)
(147
)
INVESTING ACTIVITIES
Additions to property, plant and
equipment
(13,291
)
(10,579
)
Proceeds from the sale of property, plant
and equipment
82
2
Proceeds from the sale of real estate
54,945
—
Proceeds from beneficial interest of
factored receivables
3,461
1,531
Proceeds from the sale of business
—
9,993
Net cash provided by investing
activities
45,197
947
FINANCING ACTIVITIES
Proceeds from long-term debt
180,441
145,550
Payments of long-term debt
(182,166
)
(148,450
)
Net change in short-term borrowings
(1,573
)
(225
)
Proceeds from the exercise of stock
options
—
151
Withholding tax payments on net share
settlements on equity awards
(1,299
)
(4,154
)
Payment of debt issuance costs
(16,701
)
—
Net cash used in financing
activities
(21,298
)
(7,128
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(7,096
)
(2,834
)
DECREASE IN CASH, CASH EQUIVALENTS, AND
RESTRICTED CASH
(12,529
)
(9,162
)
Cash, cash equivalents, and restricted
cash at beginning of period
61,374
68,607
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH AT END OF PERIOD
$
48,845
$
59,445
CIRCOR INTERNATIONAL,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
and per share data) (unaudited)
October 2, 2022
December 31, 2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
47,131
$
59,924
Trade accounts receivable, net
95,407
100,149
Inventories
137,411
123,343
Prepaid expenses and other current
assets
125,409
110,749
Total Current Assets
405,358
394,165
PROPERTY, PLANT AND EQUIPMENT, NET
130,442
154,461
OTHER ASSETS:
Goodwill
117,542
122,906
Intangibles, net
257,839
303,476
Lease right-of-use assets, net
40,836
21,139
Deferred income taxes
637
756
Other assets
27,323
22,395
TOTAL ASSETS
$
979,977
$
1,019,298
LIABILITIES AND SHAREHOLDERS’
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
71,601
$
83,382
Accrued expenses and other current
liabilities
73,505
81,998
Accrued compensation and benefits
31,817
26,551
Short-term borrowings and current portion
of long-term debt
—
1,611
Total Current Liabilities
176,923
193,542
LONG-TERM DEBT
501,754
511,694
DEFERRED INCOME TAXES
18,101
21,721
PENSION LIABILITY, NET
104,438
120,881
LONG-TERM LEASE LIABILITIES
37,155
17,715
OTHER NON-CURRENT LIABILITIES
19,524
20,029
COMMITMENTS AND CONTINGENCIES (NOTE 9 AND
10)
SHAREHOLDERS’ EQUITY:
Preferred stock, $0.01 par value;
1,000,000 shares authorized; no shares issued and outstanding at
October 2, 2022 and December 31, 2021
—
—
Common stock, $0.01 par value; 29,000,000
shares authorized; 21,735,838 and 21,633,131 issued at October 2,
2022 and December 31, 2021 respectively
218
217
Additional paid-in capital
455,208
454,852
Accumulated deficit
(184,132
)
(198,081
)
Common treasury stock, at cost (1,372,488
shares at October 2, 2022 and December 31, 2021)
(74,472
)
(74,472
)
Accumulated other comprehensive loss, net
of tax
(74,740
)
(48,800
)
Total Shareholders’ Equity
122,082
133,716
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
979,977
$
1,019,298
CIRCOR INTERNATIONAL,
INC.
SUMMARY OF ORDERS AND
BACKLOG
(in millions)
(unaudited)
Three Months Ended
Nine Months Ended
October 2, 2022
October 3, 2021
October 2, 2022
October 3, 2021
ORDERS (1)
Aerospace & Defense
$
90.5
$
54.0
$
237.40
$
181.3
Industrial
137.8
139.7
420.9
449.3
Total orders
$
228.3
$
193.7
$
658.3
$
630.6
October 2, 2022
October 3, 2021
BACKLOG (2)
Aerospace & Defense
$
214.0
$
180.9
Industrial
282.9
254.9
Total backlog
$
496.9
$
435.8
1. Orders do not include the foreign
exchange impact due to the re-measurement of customer backlog
amounts denominated in foreign currencies. Industrial includes $0.0
million and $6.6 million of orders for Pipeline Engineering for the
three months ended October 2, 2022 and October 3, 2021
respectively. Industrial includes $2.3 million and $17.3 million of
orders for Pipeline Engineering for the nine months ended October
2, 2022 and October 3, 2021 respectively.
2. Backlog is calculated as current period
orders plus unshipped customer orders from prior periods for which
revenue has not been recognized. Industrial includes $0.0 million
and $0.8 million for Pipeline Engineering in 2022 and 2021
respectively.
CIRCOR INTERNATIONAL,
INC.
SEGMENT INFORMATION
(in thousands, except
percentages) (unaudited)
2021 As Restated
2022
As reported
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
2ND QTR
3RD QTR
TOTAL
ORDERS
Aerospace & Defense
$
72,999
$
54,243
$
54,028
$
73,898
$
255,168
$
77,890
$
69,053
$
90,486
$
237,429
Industrial
153,695
155,959
139,691
146,065
595,410
143,727
139,370
137,848
420,945
Total
$
226,693
$
210,203
$
193,719
$
219,964
$
850,578
$
221,617
$
208,423
$
228,334
$
658,374
NET REVENUES
Aerospace & Defense
$
58,488
$
60,613
$
63,461
$
69,979
$
252,541
$
63,370
$
67,271
$
72,219
$
202,860
Industrial
117,963
126,977
126,248
134,938
506,126
122,285
124,105
123,143
369,532
Total
$
176,451
$
187,590
$
189,709
$
204,917
$
758,667
$
185,655
$
191,376
$
195,362
$
572,392
SEGMENT OPERATING INCOME
Aerospace & Defense
$
9,988
$
11,741
$
15,927
$
18,416
$
56,073
$
11,320
$
13,566
$
16,891
$
41,777
Industrial
5,834
7,237
7,124
8,700
28,896
6,857
8,484
15,717
31,059
Corporate expenses
(9,035
)
(7,950
)
(7,017
)
(6,636
)
(30,638
)
(7,770
)
(5,485
)
(5,301
)
(18,557
)
Total
$
6,787
$
11,028
$
16,034
$
20,480
$
54,331
$
10,407
$
16,565
$
27,307
$
54,279
SEGMENT OPERATING MARGIN %
Aerospace & Defense
17.1
%
19.4
%
25.1
%
26.3
%
22.2
%
17.9
%
20.2
%
23.4
%
20.6
%
Industrial
4.9
%
5.7
%
5.6
%
6.4
%
5.7
%
5.6
%
6.8
%
12.8
%
8.4
%
Total
3.8
%
5.9
%
8.5
%
10.0
%
7.2
%
5.6
%
8.7
%
14.0
%
9.5
%
2021
2022
Pipeline Engineering1
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
2ND QTR
3RD QTR
TOTAL
ORDERS - Industrial
$
5,531
$
5,192
$
6,575
$
7,121
$
24,419
$
2,260
$
—
$
—
$
2,260
NET REVENUES - Industrial
$
2,994
$
3,124
$
3,236
$
5,248
$
14,602
$
3,012
$
218
$
8
$
3,238
SEGMENT OP. INC. -Industrial
$
(2,479
)
$
(1,754
)
$
(2,470
)
$
(3,191
)
$
(9,893
)
$
(3,190
)
$
(1,074
)
$
(150
)
$
(4,414
)
Segment Operating Margin %
(82.8
)%
(56.1
)%
(76.3
)%
(60.8
)%
(67.8
)%
(105.9
)%
(492.7
)%
(1875.0
)%
(136.3
)%
- Quantifies the impact of the Pipeline Engineering business on
the Industrial Segment.
CIRCOR INTERNATIONAL,
INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES
(in thousands, except
percentages) (unaudited)
2021 As Restated
2022
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
2ND QTR
3RD QTR
TOTAL
Net Cash (Used In) Provided By Operating
Activities
$
(19,210
)
$
8,866
$
10,197
$
10,595
$
10,448
$
(15,924
)
$
(3,593
)
$
(9,815
)
$
(29,332
)
LESS
Capital expenditures, net of sale
proceeds1
3,392
2,644
4,541
4,168
14,745
3,592
5,461
4,156
13,209
ADJUSTED FREE CASH FLOW
$
(22,602
)
$
6,222
$
5,656
$
6,427
$
(4,297
)
$
(19,516
)
$
(9,054
)
$
(13,971
)
$
(42,541
)
Gross Debt
$
538,541
$
524,391
$
518,464
$
526,311
$
526,311
$
547,681
$
543,100
$
522,975
$
522,975
Less: Cash & Cash equivalents
64,837
58,862
58,013
59,924
59,924
61,122
55,238
47,131
47,131
GROSS DEBT, NET OF CASH
$
473,704
$
465,529
$
460,451
$
466,387
$
466,387
$
486,559
$
487,862
$
475,844
$
475,844
TOTAL SHAREHOLDERS' EQUITY
$
138,663
$
122,185
$
121,256
$
133,716
$
133,716
$
110,321
$
103,663
$
122,082
$
122,082
GROSS DEBT AS % OF EQUITY
388
%
429
%
428
%
394
%
394
%
496
%
524
%
428
%
428
%
GROSS DEBT, NET OF CASH AS % OF EQUITY
342
%
381
%
380
%
349
%
349
%
441
%
471
%
390
%
390
%
- Includes capital expenditures, net of proceeds of asset sales
from GAAP operating cash flow.
CIRCOR INTERNATIONAL,
INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES
(in thousands, except
percentages) (unaudited)
2021 As Restated
2022
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
2ND QTR
3RD QTR
TOTAL
NET (LOSS) INCOME
$
(11,796
)
$
(18,784
)
$
(2,630
)
$
(28,427
)
$
(61,638
)
$
(21,481
)
$
3,960
$
31,470
$
13,949
LESS:
Restructuring related inventory charges
(recoveries), net
—
958
(60
)
(299
)
599
2,757
—
—
2,757
Restructuring charges (recoveries),
net
2,060
2,281
(312
)
205
4,234
6,447
4,695
(173
)
10,969
Acquisition amortization
10,487
10,498
10,417
10,369
41,772
9,391
9,178
9,118
27,687
Acquisition depreciation
2,375
1,327
1,412
1,397
6,511
1,045
1,239
1,335
3,620
Special (recoveries) charges, net
(2,870
)
4,523
1,126
17,259
20,038
2,556
(10,425
)
(25,529
)
(33,399
)
Goodwill Impairment charge
—
—
—
10,500
10,500
—
—
—
—
Income tax impact
(44
)
2,425
(596
)
(1,622
)
163
384
(2,207
)
(2,066
)
(3,889
)
Net loss (income) from discontinued
operations
239
878
(2,510
)
(13
)
(1,406
)
—
—
—
—
ADJUSTED NET INCOME
$
451
$
4,106
$
6,847
$
9,369
$
20,773
$
1,099
$
6,440
$
14,155
$
21,694
(LOSS) EARNINGS PER COMMON SHARE
(Diluted)
$
(0.59
)
$
(0.93
)
$
(0.13
)
$
(1.40
)
$
(3.05
)
$
(1.06
)
$
0.19
$
1.54
$
0.68
LESS:
Restructuring related inventory
charges
—
0.05
—
(0.01
)
0.03
0.14
—
—
0.14
Restructuring charges (recoveries),
net
0.10
0.11
(0.02
)
0.01
0.21
0.32
0.23
(0.01
)
0.54
Acquisition amortization
0.52
0.52
0.51
0.51
2.07
0.46
0.45
0.45
1.36
Acquisition depreciation
0.12
0.07
0.07
0.07
0.32
0.05
0.06
0.07
0.18
Special (recoveries) charges, net
(0.14
)
0.22
0.06
0.85
0.99
0.13
(0.51
)
(1.25
)
(1.64
)
Impairment charge
—
—
—
0.52
0.52
—
—
—
—
Income tax impact
—
0.12
(0.03
)
(0.08
)
0.01
0.02
(0.11
)
(0.10
)
(0.19
)
(Loss) earnings) per share from
discontinued operations
0.01
0.04
(0.12
)
—
(0.07
)
—
—
—
—
ADJUSTED EARNINGS PER SHARE
(Diluted)
$
0.02
$
0.20
$
0.34
$
0.46
$
1.03
$
0.05
$
0.32
$
0.69
$
1.06
CIRCOR INTERNATIONAL,
INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES
(in thousands, except
percentages) (unaudited)
2021 As Restated
2022
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
2ND QTR
3RD QTR
TOTAL
NET (LOSS) INCOME
$
(11,796
)
$
(18,784
)
$
(2,629
)
$
(28,426
)
$
(61,635
)
$
(21,481
)
$
3,960
$
31,470
$
13,949
LESS:
Interest expense, net
8,369
7,958
7,997
8,040
32,365
9,456
10,203
11,821
31,480
Depreciation
6,509
5,460
5,536
5,348
22,854
5,000
5,056
4,956
15,012
Amortization
10,696
10,657
10,576
10,375
42,304
9,397
9,183
9,124
27,704
Provision for income taxes
(297
)
2,659
850
1,970
5,182
1,523
(647
)
1,661
2,536
Loss (income) from discontinued
operations
239
878
(2,510
)
(13
)
(1,406
)
—
—
—
—
EBITDA
$
13,720
$
8,828
$
19,820
$
(2,706
)
$
39,664
$
3,895
$
27,755
$
59,032
$
90,681
LESS:
Restructuring related inventory charges
(recoveries)
—
958
(60
)
(299
)
599
2,757
—
—
2,757
Restructuring charges (recoveries),
net
2,060
2,281
(312
)
205
4,234
6,447
4,695
(173
)
10,969
Special (recoveries) charges, net
(2,870
)
4,523
1,126
17,259
20,038
2,556
(10,425
)
(25,529
)
(33,399
)
Goodwill impairment charge
—
—
—
10,500
10,500
—
—
—
—
ADJUSTED EBITDA
$
12,910
$
16,590
$
20,574
$
24,959
$
75,035
$
15,655
$
22,025
$
33,330
$
71,008
CIRCOR INTERNATIONAL,
INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES
(in thousands, except
percentages) (unaudited)
2021 As Restated
2022
1ST QTR
2ND QTR
3RD QTR
4TH QTR
TOTAL
1ST QTR
2ND QTR
3RD QTR
TOTAL
OPERATING (LOSS) INCOME
$
(5,266
)
$
(8,557
)
$
3,451
$
(18,952
)
$
(29,323
)
$
(11,789
)
$
11,878
$
42,556
$
42,645
LESS:
Restructuring related inventory charges
(recoveries)
—
958
(60
)
(299
)
599
2,757
—
—
2,757
Restructuring charges (recoveries),
net
2,060
2,281
(312
)
205
4,234
6,447
4,695
(173
)
10,969
Acquisition amortization
10,487
10,498
10,417
10,369
41,772
9,391
9,178
9,118
27,687
Acquisition depreciation
2,375
1,327
1,412
1,397
6,511
1,045
1,239
1,335
3,620
Special (recoveries) charges, net
(2,870
)
4,523
1,126
17,259
20,038
2,556
(10,425
)
(25,529
)
(33,399
)
Goodwill impairment charge
—
—
—
10,500
10,500
—
—
—
—
ADJUSTED OPERATING INCOME
$
6,787
$
11,029
$
16,034
$
20,479
$
54,331
$
10,407
$
16,565
$
27,307
$
54,279
OPERATING MARGIN
(3.0
)%
(4.6
)%
1.8
%
(9.2
)%
(3.9
)%
(6.3
)%
6.2
%
21.8
%
7.5
%
LESS:
Restructuring related inventory charges
(recoveries)
0.0
%
0.5
%
0.0
%
(0.1
)%
0.1
%
1.5
%
0.0
%
0.0
%
0.5
%
Restructuring charges (recoveries),
net
1.2
%
1.2
%
(0.2
)%
0.1
%
0.6
%
3.5
%
2.5
%
(0.1
)%
1.9
%
Acquisition amortization
5.9
%
5.6
%
5.5
%
5.1
%
5.5
%
5.1
%
4.8
%
4.7
%
4.8
%
Acquisition depreciation
1.3
%
0.7
%
0.7
%
0.7
%
0.9
%
0.6
%
0.6
%
0.7
%
0.6
%
Special (recoveries) charges, net
(1.6
)%
2.4
%
0.6
%
8.4
%
2.6
%
1.4
%
(5.4
)%
(13.1
)%
(5.8
)%
Goodwill impairment charge
0.0
%
0.0
%
0.0
%
5.1
%
1.4
%
0.0
%
0.0
%
0.0
%
0.0
%
ADJUSTED OPERATING MARGIN
3.8
%
5.9
%
8.5
%
10.0
%
7.2
%
5.6
%
8.7
%
14.0
%
9.5
%
CIRCOR INTERNATIONAL,
INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES
(in thousands, except
percentages) (unaudited)
CIRCOR
Aerospace &
Defense
Industrial
3Q
22
3Q
21
Change
3Q
22
3Q
21
Change
3Q
22
3Q
21
Change
Reported Orders
228,334
193,719
18
%
90,486
54,028
67
%
137,848
139,691
(1
)%
FX
16,620
3,756
12,864
Organic
244,954
193,719
26
%
94,242
54,028
74
%
150,712
139,691
8
%
CIRCOR
Aerospace &
Defense
Industrial
3Q
22
3Q
21
Change
3Q
22
3Q
21
Change
3Q
22
3Q
21
Change
Reported Revenue
195,362
189,709
3
%
72,219
63,461
14
%
123,143
126,248
(2
)%
FX
13,680
2,665
11,015
Organic
209,042
189,709
10
%
74,884
63,461
18
%
134,158
126,248
6
%
Note regarding financial statements: Financial amounts
are computed independently each quarter; therefore, the sum of the
quarterly amounts may not equal the total amount for the respective
year due to rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221111005548/en/
Scott Solomon Senior Vice President Sharon Merrill Associates,
Inc. (857) 383-2409
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